Limits security deposits to one month's rent; requires landlords to return the full security deposit and any accrued interest to which the tenant is entitled less any amount retained by the landlord within 21 days of the end of the lease.
Summary
This bill would add a new section to New York’s General Obligations Law governing residential security deposits. It caps a dwelling security deposit at no more than one month’s rent and requires landlords to notify tenants one month before lease expiration that they may request a pre-move-out and post-move-out walkthrough to document damages. The bill also requires landlords to return the full security deposit, plus any accrued interest owed to the tenant, within 21 days after the lease ends, unless the landlord is retaining some or all of the deposit for specified reasons.
If a landlord keeps any portion of the deposit, the bill requires a written explanation within 21 days, along with photographic documentation and itemized proof of repair costs, including receipts or invoices showing payment. The tenant must sign the statement if they agree with it; if they do not, or if the landlord does not comply, the tenant may use the Attorney General’s mediation process or bring a small claims action. The bill also creates strong penalties for willful violations, including treble damages, attorneys’ fees, court costs, and the tenant’s last two months’ rent, and it voids any lease term that waives these protections.
Impact
The bill would significantly expand and standardize landlord obligations regarding security deposits in residential rentals. It would amend the General Obligations Law by creating a new section 7-104, imposing a one-month cap on deposits, a 21-day deadline for return or accounting, documentation requirements for deductions, and enforcement mechanisms through mediation and small claims court. It would also require reporting of violations to the Department of Homes and Community Renewal, which must maintain and publish a public list of landlords found in violation.
Sentiment
No committee transcript or vote record was provided, so there is no direct evidence of debate or recorded support/opposition. Based on the bill text, the measure appears tenant-protective and aimed at increasing transparency and accountability in the handling of security deposits. The overall policy direction suggests support from tenant advocates and likely concern from landlord interests due to the tighter deadlines, documentation burdens, and enhanced penalties.
Contention
The main points of contention are likely to be the one-month cap on security deposits, the 21-day return deadline, and the requirement for detailed photographic and payment documentation before deductions can be kept. Landlords may object to the administrative burden, the public reporting of violations, and the treble-damages penalty structure, while tenant advocates would likely support these provisions as protections against delayed or improper withholding of deposits. The bill also creates a dispute-resolution path through the Attorney General and small claims court, which may be seen as either a useful remedy or an added litigation risk depending on the stakeholder.
Requires landlords to return the full security deposit and any accrued interest to which the tenant is entitled less any amount retained by the landlord within 21 days of the end of the lease.
Requires landlords to return the full security deposit and any accrued interest to which the tenant is entitled less any amount retained by the landlord within 21 days of the end of the lease.
Requires landlords to provide tenants with a rent ledger containing a detailed record, including the amount, date and method of payment, of all financial transactions between such lessee and lessor, including rent payments, late fees, and security deposits.
Provides that a landlord depositing security deposits in an interest bearing account shall be entitled to receive as administration expenses a sum equivalent to 20 percent of the interest earned by such security money per annum, but not to exceed one percent per annum of the money so deposited.
Provides that a landlord depositing security deposits in an interest bearing account shall be entitled to receive as administration expenses a sum equivalent to 20 percent of the interest earned by such security money per annum, but not to exceed one percent per annum of the money so deposited.
Requiring landlords to return the security deposit and certain portions of rent payments that would be due when a dwelling unit is condemned due to action or inaction of the landlord.